Gold Price News: Zijin Mining is Pessimistic on Gold Prices


Zijin Mining, the leading Chinese gold producer, is betting on lower gold prices for the end of 2014 and is already planning on how to counter them. According to Wang Jianhua, the President of Zijin Mining, the relatively weak global demand will not boost gold prices.

Zijing Mining is considering exploring new options in order to make up for the low demand: “In the next few years, Zijinshan will undergo a transitory period towards copper mining, but the profitability of copper does not necessarily have to be less than that of gold,” Wang said. Indeed, gold contributed to 38.4% of Zijin’s operating profit in the first half of the year, down from 55.8 % compared to the  same period last year, while copper contributed to 39.4% of Zijin’s operating profit in the same period , up from 32.9 per cent. Zijin Mining plans on improving operation and on seeking new acquisitions to compensate for lower gold prices. 

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